MONTREAL — Canadian National Railway said today it is cutting 1,146 jobs in a cost-cutting effort and taking a $252-million charge against earnings for personal injury claims and severance costs, the Canadian Press reported.
About two-thirds of the job cuts will occur in Canada, the rest in the United States.
“The job reductions in CN’s latest productivity initiative will occur in every corporate and operating function,” Canada’s largest railway said in a release.
About 30 per cent of the reductions are to be achieved through normal attrition and retirement, 45 per cent through early retirement and 25 per cent through severance packages.
“We take no joy in announcing these permanent job reductions, but CN must leave no stone unturned in this productivity initiative, given difficult conditions in our bulk commodity businesses and escalating labour costs,” chief executive Paul Tellier said.
The cuts will mean a fourth-quarter charge against earnings of $79 million for severance and other payments to affected employees.
CN also announced a $173-million provision for U.S. personal injury and other claims, including those for hearing loss, carpal tunnel syndrome and asbestos-related disease, reflecting new accounting methodology.
“CN is faced with a rising number of personal injury claims in the U.S. and we want to reflect our expected liability in a consistent and forthright manner,” Tellier said.
Canadian National Railway spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving major ports and key North American cities.